Few AMP advisers will leave due to education reforms

Despite predictions that the higher education reforms will see a mass exodus of financial planners from the industry, AMP says only a “small number” of its advisers may actually retire.

As previously reported by ifa, AMP chief executive, Craig Meller, said two-thirds of its 3,657 advisers currently do not meet the government’s proposed higher education standards.

There has been speculation in the industry that the reforms could result in a mass exodus of advisers.

However, AMP’s head of advice recruitment and professional development, Amelia Constantinidis, said only a few of its advisers may end up retiring.

“While a small number of advisers may decide to retire before the standards are in place, the majority of our advisers are supportive of lifting education standards as they can see the benefits it provides in improving perceptions of the financial planning profession and raising consumer confidence,” Ms Constantinidis told ifa.

In the AFA’s submission to Treasury responding to the draft legislation for improving professional standards, the association flagged “serious” concerns about the need for current advisers to meet the higher standards.

"Whilst in their later years as a practising adviser, the prospect of facing considerable time, cost and the stress of completing new degree-equivalent courses and doing an examination that is not reflective of operating in the advice environment, will drive a significant number of quality advisers to consider earlier retirement,” the AFA said.

"The prospect of thousands of quality, experienced advisers exiting early over the next three years is an extremely concerning consequence of the proposed framework."

The FPA’s Dante De Gori earlier told ifa that the association is expecting that some advisers will choose not to undertake the studies needed to meet the new standards or will not succeed in completing the necessary study.

“Either way there will be adviser losses, because there will be advisers who decide they don’t want to do any further study and don’t want to do the exam, and leave that industry,” Mr De Gori said.